1, GameStop's stock price was $15.80 a share, which gave it a market value of slightly more than $1 billion. It still has more than 5,000 stores in the US. ![]() But the company closed 462 stores in 2020, with plans to shutter more than 1,000 stores total by March. ![]() In September 2019, GameStop CEO George Sherman tried to get gamers back into stores by turning a few test stores into hangouts for customers. These services let players stream games without the need for physical copies of games or even consoles. Microsoft's xCloud and Nvidia's Geforce Now launched last year, following Google's Stadia service, which came out in late 2019. We enter next gen with digital >50%- Daniel Ahmad July 30, 2020Ĭloud gaming also grew in 2020. Sony said that 51% of all games sold on PS4 in FY2020 were digital Let's take a look at how GameStop is performing as an actual business, and not just as the target of some enthusiastic individual investors.ĮA said that 52% of its console full game unit sales in the past 12 months were via digital downloadįor reference, Take Two says its ratio was 55% for FY2020 Lost in all the hoopla is that GameStop continues to falter when it comes to all the important metrics for a company, with declining sales and the closing of 462 stores last year. To those on the WallStreetBets subreddit, that's the point. ![]() Stock prices have, at some level, always been disconnected from reality for the average American (just stack 2020's stock market gains against the pandemic-fueled economic collapse), but this GameStop roller coaster ride throws all logic and basic investment principles out the window. That type of investing, known as short selling, opened the door to individuals who coordinated their efforts online to drive up the price. Indeed, one of the reasons for its stratospheric gains is that so many institutional investors were betting on it to fail - to an absurd degree. The share price for GameStop doesn't tell the whole story about the company. Fans of the stock continue to hold their GameStop shares to stick it to Wall Street and hedge funds, but don't be fooled, the company isn't doing so hot. The video game retailer's shares grew by more than 14,300%, but they've since plummeted, going from $328 on Friday to a close of $53.50 on Thursday. GameStop's stock price soared last week due to a concerted effort by traders on Reddit.
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